(A) Notwithstanding any other provisions of the code of this city, this city hereby allocates from its funds eligible for investment the sum of $300,000 per year for municipal linked deposits to encourage development within the city. The Finance Director is directed to organize his or her investments in such a way as to insure that the funds so allocated by this section will be available for investment through municipal linked deposits as such deposits are approved in the manner set forth below.
(B) Investments in municipal linked deposits shall be made only on the following terms.
(1) Deposits shall be made on the basis of $10,000 of deposit for each new job created in the city, provided that no deposit shall exceed $300,000 in amount, nor three years in term.
(2) Deposits shall be in institutions otherwise eligible for deposit of the city’s funds pursuant to the code of the city, and the Ohio Revised Code.
(3) The city’s interest rate on the linked deposits shall not be less than 3% below market rates for a certificate of deposit of this term.
(4) Loans linked to the deposit shall amortize in the amount of the linked deposit in excess of the loan balance at any point shall be returned to a separate deposit at market rates.
(5) The municipal linked deposit agreement shall be approved as to form by the city attorney.
(6) Loans linked to the deposit shall be made for the purpose of acquiring and/or constructing land, building fixtures, and site improvements within the city.
(7) All credit underwriting shall be the responsibility of the institution and the funds of the city shall not in any way be pledged to the repayment of the loan.
(C) In the event that the Finance Director determines that the amount set forth for allocations to the municipal linked deposits program cannot be so allocated because of the city’s requirements for active deposits, or if the funds so allocated have all been deposited for other projects, then the Finance Director shall forthwith notify the Mayor and the president of City Council in the event it is desired that further funds be allocated.
(D) The Finance Director is authorized to enter into linked deposit agreements in accordance with the provisions of this section, and on such other terms as the Director may deem proper. After receiving recommendations from the Municipal Administrator and executive director of the Bowling Green CDF, the Finance Director is further authorized to make such deposits pursuant to such agreements from funds allocated in accordance with this section upon presentation of a certification by the proposed borrower as to the number of jobs to be created, and a commitment letter approving the loan issued by an eligible institution.
(1980 Code, § 35.60) (Ord. 5328, passed 8-19-1991; Am. Ord. 6328, passed 7-6-1998)